What situations warrant using the auction method of marketing?
When the clients objectives are to sell the property in the shortest possible time frame, truly see what the market will bear under terms and conditions favorable to the seller, and desire a marketing saturation of their property then auction is the way.
Is the auction method ever used as a first selling method?
Yes, the auction method is not only the best but should be the first choice. An auction does not create the price ceiling that a conventional listing does. The seller can set the conditions for the sale and eliminate endless negotiations. .
Are real estate auctions only for distressed properties?
No, most of our auctions do not result from repossessed properties, but rather are the result of the smart seller. A smart seller chooses the cost effective, accelerated method of selling property rather than listing the property for an undetermined length of time. Usually listings require long term marketing periods with multiple unscheduled, showings and creative, contingency offers. The auction method sets the date the property will sell and eliminates these hassles.
Can there be a reserve or a minimum bid on an item or piece of property?
Yes, the seller has the right to execute a reserve or minimum bid. This figure is discussed with the auction professional during early negotiations of the contract and is not disclosed to any potential buyer under any circumstances. The seller has the right to accept or decline the highest bid if it falls below the established reserve price.
If the high bid is less than my predetermined minimum value can I accept it?
Yes, the seller always has the right to sell the property at the highest bid price.
How long will the whole process take?
Ideally, the contract must be signed at least 3-4 weeks prior to the auction day, the closing takes place approximately 30 days after the auction date.
Where will the auction take place?
On single properties the auction typically takes place on site, either in a tent, on the front porch, or in the living room. For multi-property or vacant land auctions a ballroom setting is typically more appropriate for the auction setting.
How long after the auction occurs will I get paid?
Approximately 30 days after the auction, a closing date will be set. At that time the property owner will be paid and turnover possession to the buyer. The closing will be insured by a professional title company. If it is a personal property auction, you will get paid on auction day.
What factors determine the success at an auction?
Many factors contribute to a successful auction, the desirability of the property being sold i.e. location, condition and surrounding properties. Secondly, and most important, realistic expectations on the part of the seller. Every property has a value, when a property is properly advertised and promoted and two or more approved bidders are in attendance the high bid achieve is true market value. If the seller realizes this and is truly motivated to sell at the achieved price under stated terms and conditions a successful auction occurs.
What are the terms of an auction?
The terms and conditions are devised to protect the seller and the process of the auction method. Properties are sold “as is, where is” with all faults. The purchase agreement is produced with no contingencies, including those for inspections and financing.